If the opportunity costs of producing a good increase as more of that good is produced, the economy's production possibility frontier will be
A. a negatively sloped straight line.
B. a positively sloped straight line.
C. negatively sloped and "bowed outward" from the origin.
D. negatively sloped and "bowed inward" toward the origin.
Answer: C
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Hotelling's model has been used to describe differentiation in the political "market." Suppose that 100 voters are evenly distributed between the extreme left and the extreme right on the political spectrum, and that all voters vote, and they always vote for the candidate closest to them on this spectrum. The numbers on this spectrum represent the number of voters lying to the left of the number. So, at the midpoint, fifty voters lie to the left and fifty to the right. At the extreme right end, all 100 voters lie to the left. 
If Candidate X is running against Candidate Z, by moving to the right Candidate X would:
A. force Z to move farther to the right in order to keep the same number of votes. B. not lose any votes from voters on the left and gain some votes from Z. C. lose some votes from voters on the far left but gain approximately the same number of votes from Z. D. win the election if the move placed X anywhere to the right of 25 on the spectrum.
Which of the following statements is TRUE?
A) In the long run, the average cost curve is always downward sloping. B) In the long run, the quantities of all inputs are fixed. C) In the long run, the firms' fixed costs are greater than its variable costs. D) In the long run, all costs are variable costs.
A country has net capital outflow of -10 billion euros and domestic investment of 20 billion euros. What is its national saving?
a. 30 billion euros b. 10 billion euros c. -10 billion euros d. -30 billion euros
Over the past few decades, the price of movie tickets:
A. has risen both in nominal terms and in real terms. B. has risen in nominal terms but has not risen in real terms. C. has fallen in nominal terms and in real terms. D. has risen in real terms but has not risen in nominal terms.